BILL ANALYSIS Ó
AB 215
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ASSEMBLY THIRD READING
AB
215 (Alejo)
As Amended June 2, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Education |6-1 |O'Donnell, Kim, |Chávez |
| | |McCarty, Santiago, | |
| | |Thurmond, Weber | |
| | | | |
| | | | |
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SUMMARY: Reduces, for contracts executed on or after January 1,
2016, the maximum cash settlement that may be paid to a school
district superintendent in the case of terminations of employment
from 18 months times the monthly salary to 12 months times the
monthly salary. Prohibits a cash settlement in the case of a
termination in which the school district believes and subsequently
confirms through an independent audit that the superintendent has
engaged in fraud, misappropriation of funds, or other illegal
fiscal practices.
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EXISTING LAW:
1)Permits, if the contract with a school district superintendent
is terminated, a cash settlement equal to the monthly salary of
the superintendent multiplied by the number of months left on
the unexpired term of the contract up to a maximum of 18 months.
2)Permits a cash settlement of up to six months times the monthly
salary in the case of a superintendent who is terminated because
the school district believes and subsequently confirms through
an independent audit that the superintendent has engaged in
fraud, misappropriation of funds, or other illegal fiscal
practices,
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: This bill reduces from 18 times the monthly salary to
12 times the monthly salary the maximum cash settlement that may
be paid to a school district superintendent whose employment has
been terminated. However, the cash settlement cannot exceed the
number of unexpired months on the contract. In the case of a
termination in which the school district believes and subsequently
confirms that the superintendent has engaged in fraud,
misappropriation of funds, or other illegal fiscal practices, this
bill reduces the maximum cash settlement from six times the
monthly salary to zero.
According to the California Department of Education (CDE) the
average annual salaries for unified school district
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superintendents, by district size, in 2012-13 as follows:
1)One hundred sixteen thousand six hundred six dollars for
districts with less than 1,500 average daily attendance (ADA);
2)One hundred fifty-one thousand nine hundred twelve dollars for
districts with 1,500 to 4,999 ADA;
3)One hundred eighty-three thousand five hundred fifty-seven
dollars for districts with 5,000 to 9,999 ADA;
4)Two hundred six thousand two hundred ninety-two dollars for
districts with 10,000 to 19,999 ADA; and
5)Two hundred twenty-seven thousand one hundred eighty-three
dollars for districts with more than 20,000 ADA.
There is considerable variance around these averages. Information
provided by the author's office shows that the highest salaries
range from $265,773 to $322,159. With salaries in this range, the
maximum cash settlement could range from $398,660 to $483,239
under existing law.
Reason for the bill. The author's office argues that, "by placing
a cap on district superintendent's severance pay, we can save
money for students, begin to improve our school administrative
processes, and demonstrate fiscal discipline in the administration
of taxpayer dollars."
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Analysis Prepared by:
Rick Pratt / ED. / (916) 319-2087 FN: 0000881